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US House panel to hold hearing on Wells Fargo accounts scandal

The House of Representatives Financial Services committee plans to hold a hearing into Wells Fargo & Co next week after a scandal at the bank involving 2 million fake accounts that thousands of employees set up in customers' names.

By: | Washington | Published: September 22, 2016 10:54 AM
About  million will directly go to customers, many of whom might have paid a small fee on the unwanted accounts. (AP) About million will directly go to customers, many of whom might have paid a small fee on the unwanted accounts. (AP)

The House of Representatives Financial Services committee plans to hold a hearing into Wells Fargo & Co next week after a scandal at the bank involving 2 million fake accounts that thousands of employees set up in customers’ names.

The hearing, which a committee spokeswoman said would be held on Sept. 29, follows one by the Senate banking panel on Tuesday at which Chief Executive John Stumpf was criticized for his failure to properly answer questions about the matter.

Earlier this month, the lender agreed to pay $190 million in penalties and customer payouts to settle the case involving the creation of credit, savings and other accounts without customers’ knowledge.

About $5 million will directly go to customers, many of whom might have paid a small fee on the unwanted accounts.

The Department of Justice and FBI also have launched probes into the bank’s actions following its settlement with the Consumer Financial Protection Bureau and Los Angeles city attorney.

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